Among the most relevant tax implications of the increase in the TU’s value is the change in the minimum amount required for individuals to qualify as payers of income tax, as well as the minimum amount of wages, salaries and other contributions subject to the withholding of such tax.
In the case of taxes that are collected annually (such as income tax), the applicable TU will be the one that has been in effect for at least 183 days during the relevant fiscal year. In practical terms, this means that the TU change will not apply to 2011 income tax returns filed or to be filed in 2012 by individuals or corporate taxpayers. In the case of other taxes that are not levied annually, the applicable TU will be the one effective at the beginning of the taxable period.
The increase in the TU’s value also affects the taxable base for those who are obligated to make contributions to the Sports Fund,1 since such contribution will now be payable by all companies or other public or private organizations that perform economic activities within the country and earn annual net profits of more than Bs.F.1,800,000 (20,000 TU).
Furthermore, those who are required to make contributions to the Science & Technology Fund must consider that the increase in the TU’s value means that the taxable base for public and private businesses with income above 100,000 TU will now be Bs.F.9,000,000.
As regards labour matters, those who are obligated to grant food benefits (employers in the public and private sector that employ more than 20 workers) must take into account the impact of the increase in the value of the TU for purposes of the Workers’ Nutrition Law.2 According to that law, the value of tickets or coupons (“cesta tickets”) must be less than 0.25 TU (now Bs.F.22.5) or more than 0.50 TU (now Bs.F.45), per working day.
The increase in the value of the TU will affect the calculation of levies, sanctions, penalties, contributions, guarantees and procedural benefits, among other items that are based on the TU value. In this regard, it is worth noting that the Law that establishes the Calculation Factor of Contributions, Penalties, Procedural and other Benefits in Currently Existing Laws3 replaced the minimum wage with a value in Bolivars equivalent to 3 TU in all existing laws, with the exception of labour and social security legislation, as the basis for the calculation of contributions, guarantees, penalties and procedural and other benefits.
1 Published in Official Gazette No. 39.741 of August 23, 2011.
2 Published in Official Gazette No. 38.094 of December 27, 2004.
3 Published in Official Gazette No. 36.362 of December 26, 1997.
Download Venezuelan tax unit increase (pdf 86.46kb)
Back to top